Pension scheme for workers meagre? Govt data shows most get under Rs 1,500

Total pension disbursals under EPS-95 rise but beneficiaries may not be getting enough as living costs rise, say trade unions

Nearly every second beneficiary of the Employees’ Pension Scheme, 1995 (EPS-95) receives less than Rs 1,500 monthly, news agency PTI reported citing data presented before Parliament. The figure highlights growing concern over the adequacy of social security scheme for retired workers.

What the data shows

According to the Labour Ministry, as of March 31, there were 8.15 million pensioners under EPS-95, a scheme administered by the Employees’ Provident Fund Organisation (EPFO).

 

• 4.915 million pensioners, or more than half, draw below Rs 1,500 monthly under EPS-95. 
• 7.87 million pensioners, over 96 per cent, receive less than Rs 4,000 a month. 
• 8.09 million pensioners, almost 99 per cent, get under Rs 6,000 monthly. 
• 53,541 pensioners, just 0.65 per cent, draw more than Rs 6,000 a month. 
• The minimum pension under EPS-95 is fixed at Rs 1,000 monthly.

 

 

Growing demand for higher pensions

According to PTI, trade unions have long argued that meagre pensions do little to support retired workers facing rising living costs. They have pressed the government to raise the minimum monthly pension to Rs 9,000, part of a 17-point charter of demands submitted to the Labour Ministry.

 

Pension disbursal and EPFO’s income

Shobha Karandlaje, Minister of State for Labour and Employment, told Rajya Sabha that total pension disbursals under EPS-95 rose to Rs 23,028 crore in 2023-24, compared with Rs 22,113 crore in 2022-23. 

 

At the same time, the EPFO’s earnings have grown:

 

Interest income increased to Rs 58,669 crore in 2023-24 from Rs 52,171 crore in 2022-23.

 

Other income (such as penal damages and interest) rose to Rs 864 crore, up from Rs 564 crore in the previous year.

 

Funds lying in inoperative accounts stood at Rs 10,898 crore as of March 2025, though this figure is provisional pending finalisation of annual accounts.

 

(With inputs from PTI)